CROMPTON & KNOWLES CORPORATION EMPLOYEE STOCK OWNERSHIP PLAN STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993 1995 Fixed C&K Equity Advisers Mortgage Income Fund Stock Fund Fund Fund Fund Total Investment income: Cash dividends on investment in common stock of Crompton & Knowles Corporation and interest on short-term investments $ 2,885 $ 1,072,287 $ 2,371 $ 1,257 $ 190 $ 1,078,990 Realized gain on sale of investments and withdrawals - 1,297,120 - - - 1,297,120 Interest earned - Hartford Life Insurance Company group annuity contract 1,051,264 - - - - 1,051,264 Net investment income 1,054,149 2,369,407 2,371 1,257 190 3,427,374 Increase (decrease) in unrealized appreciation of investments - (7,454,185) 824,777 120,815 37,820 (6,470,773) Contributions: Employee Rollovers 67,972 1,846 104,571 17,065 - 191,454 Employees 881,159 1,741,948 373,786 158,134 73,737 3,228,764 Employer - Net of forfeitures - 2,043,854 - - - 2,043,854 Withdrawals and Distributions (936,731) (1,662,650) (159,231) (48,740) (12,506) (2,819,858) Employee interfund transfers 1,818,848 (1,226,417) (326,925) (243,879) (21,627) - Net increase/(decrease) in Plan Equity for the year 2,885,397 (4,186,197) 819,349 4,652 77,614 (399,185) Plan Equity at beginning of year 15,064,264 32,476,022 2,411,735 658,125 239,535 50,849,681 Plan Equity at end of year $ 17,949,661 $ 28,289,825 $ 3,231,084 $ 662,777 $ 317,149 $ 50,450,496 1994 Fixed C&K Equity Advisers Mortgage Income Fund Stock Fund Fund Fund Fund Total Investment income: Cash dividends on investment in common stock of Crompton & Knowles Corporation and interest on short-term investments $ 4,357 $ 879,230 $ 4,847 $ 1,583 $ 652 $ 890,669 Realized gain on sale of investments and withdrawals - 1,242,744 - - - 1,242,744 Interest earned - Hartford Life Insurance Company group annuity contract 949,787 - - - - 949,787 Net investment income 954,144 2,121,974 4,847 1,583 652 3,083,200 Increase (decrease) in unrealized appreciation of investments - (12,033,946) 25,662 (14,931) (4,103) (12,027,318) Contributions: Employee Rollovers 1,039 - 221 - - 1,260 Employees 701,355 1,548,111 268,877 94,419 53,431 2,666,193 Employer - Net of forfeitures - 1,676,755 - - - 1,676,755 Withdrawals and Distributions (972,580) (2,231,903) (122,309) (28,957) (15,192) (3,370,941) Employee interfund transfers 750,591 (1,286,569) 416,791 123,419 (4,232) - Net increase/(decrease) in Plan Equity for the year 1,434,549 (10,205,578) 594,089 175,533 30,556 (7,970,851) Plan Equity at beginning of year 13,629,715 42,681,600 1,817,646 482,592 208,979 58,820,532 Plan Equity at end of year $ 15,064,264 $ 32,476,022 $ 2,411,735 $ 658,125 $ 239,535 $ 50,849,681 1993 Fixed C&K Equity Advisers Mortgage Income Fund Stock Fund Fund Fund Fund Total Investment income: Cash dividends on investment in common stock of Crompton & Knowles Corporation and interest on short-term investments $ 1,755 $ 755,945 $ 1,371 $ 352 $ 288 $ 759,711 Realized gain on sale of investments and withdrawals - 4,614,837 - - - 4,614,837 Interest earned - Hartford Life Insurance Company group annuity contract 865,918 - - - - 865,918 Net investment income 867,673 5,370,782 1,371 352 288 6,240,466 Increase (decrease) in unrealized appreciation of investments - (5,181,885) 206,916 42,937 8,885 (4,923,147) Contributions: Employee Rollovers 13,566 - - - - 13,566 Employees 860,790 1,435,118 207,199 67,839 56,070 2,627,016 Employer - Net of forfeitures - 1,617,481 - - - 1,617,481 Withdrawals and Distributions (1,684,871) (5,012,089) (67,674) (42,839) (3,371) (6,810,844) Employee interfund transfers 1,448,397 (1,605,768) 112,091 48,780 (3,500) - Net increase/(decrease) in Plan Equity for the year 1,505,555 (3,376,361) 459,903 117,069 58,372 (1,235,462) Plan Equity at beginning of year 12,124,160 46,057,961 1,357,743 365,523 150,607 60,055,994 Plan Equity at end of year $ 13,629,715 $ 42,681,600 $ 1,817,646 $ 482,592 $ 208,979 $ 58,820,532 See accompanying notes to financial statements